2007-02-16 04:02:32 · 5 answers · asked by TechyMa 1 in Business & Finance ➔ Taxes ➔ United States
No you don't claim that as income. It is proceeds from a loan, not income.
2007-02-16 04:11:11 · answer #1 · answered by Insurance Biz CT 5 · 2⤊ 0⤋
To claim or not to claim depends on what the cash was for.
If you refinanced your house and got the additional cash as a loan, then no you don't have to claim that on your taxes.
But if for some reason the bank was forgiving part of your debt (which I doubt), that would be taxable.
Most banks are good with sending the appropriate tax information via 1098 and 1099 forms. Take a peek at your refinance documents and those tax forms. It will give you a pretty good idea of what to do.
2007-02-16 04:10:15 · answer #2 · answered by Molly 6 · 1⤊ 3⤋
Yes because when you have your taxes done it will show the amount that you re-fied for. I know my husband and I did a refi in May of 06 and got some extra cash and we had to claim that.
Just a bit of info for you, I don't know were you have your taxes done at but were I go were I live they let me claim my mileage since I drive about 40 miles round trip everyday, and they let us claim some of our house expenses since my husband has a office at home ie, average of our power bill and phone bill. Plus they tell us since we are home owners that we need to keep all receipts from good will if you do any donations through out the year. Plus if you have paid any extra medical bills above and beyond just the co-pay.
I would really check around and see if any tax preparation place were you live does any of that. Because that helped us out a lot this year. Well not to mention that I had a baby on 7-6-06 so that helped us too. But anyway good luck hopefully you don't have to pay uncle sam anymore money, I'm sure you paid him enough over the year. :)
2007-02-16 04:11:47 · answer #3 · answered by blondie21_97504 3 · 0⤊ 4⤋
No you do not. That is not a profit it is considered a loan. But if you sold your house and recieved money for it, then it would be profit and you would have to claim it. Real estate investors do this all the time, the extra is considered loan money and they dont have to report it as income.
2007-02-16 04:15:18 · answer #4 · answered by Anonymous · 0⤊ 1⤋
No, loan proceeds are not income to you since you'll have to pay it back.
2007-02-16 10:13:52 · answer #5 · answered by Judy 7 · 0⤊ 0⤋